Naperville is a mid-range market in the Midwest with a smaller market with 150,000 residents. At a 4.40% estimated cap rate, this is a moderate market where rents of $2,130/mo lag behind home prices. With a median home price of $340,000 and population is roughly stable, Naperville offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Naperville's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $340,000, the $2,130/mo rent produces only $1,247/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($68K at 7%) would result in approximately $-562/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
Property taxes consume 27% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Naperville a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
Pre-filled with Naperville medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Naperville.
Naperville, IL has a population of 150,000 and has been growing at 0.5% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $340,000 paired with median rents of $2,130/mo produces an estimated cap rate of 4.40%.
Property taxes at 2% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 4.2% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 2.9x, homes cost about 2.9 times the local median income of $118,000. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Naperville presents moderate opportunities. Cap rates near 4.40% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.